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Akamai Technologies (Akamai Technologies) Cash Conversion Cycle : 13.46 (As of Dec. 2023)


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What is Akamai Technologies Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Akamai Technologies's Days Sales Outstanding for the three months ended in Dec. 2023 was 47.25.
Akamai Technologies's Days Inventory for the three months ended in Dec. 2023 was 0.
Akamai Technologies's Days Payable for the three months ended in Dec. 2023 was 33.79.
Therefore, Akamai Technologies's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 13.46.


Akamai Technologies Cash Conversion Cycle Historical Data

The historical data trend for Akamai Technologies's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Akamai Technologies Cash Conversion Cycle Chart

Akamai Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.28 8.14 18.57 16.38 12.87

Akamai Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.32 6.26 1.07 7.56 13.46

Competitive Comparison of Akamai Technologies's Cash Conversion Cycle

For the Software - Infrastructure subindustry, Akamai Technologies's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Akamai Technologies's Cash Conversion Cycle Distribution in the Software Industry

For the Software industry and Technology sector, Akamai Technologies's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Akamai Technologies's Cash Conversion Cycle falls into.



Akamai Technologies Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Akamai Technologies's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=48.18+0-35.31
=12.87

Akamai Technologies's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=47.25+0-33.79
=13.46

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Akamai Technologies  (NAS:AKAM) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Akamai Technologies Cash Conversion Cycle Related Terms

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Akamai Technologies (Akamai Technologies) Business Description

Traded in Other Exchanges
Address
145 Broadway, Cambridge, MA, USA, 02142
Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. Its customers generally include media companies, which stream video content or make video games available for download, and other enterprises that run interactive or high-traffic websites, such as e-commerce firms and financial institutions. Akamai also has a significant security business, which is integrated with its core delivery and computing businesses to protect customers from cyberthreats.
Executives
Paul C Joseph officer: EVP - Global Sales C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Kim Salem-jackson officer: EVP, Chief Marketing Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Aaron Ahola officer: SVP & General Counsel C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Robert Blumofe officer: EVP Platform C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Madhu Ranganathan director 760 MARKET STREET, 4TH FLOOR, SAN FRANCISCO CA 94102
Edward J Mcgowan officer: Chief Financial Officer C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Anthony P Williams officer: EVP and CHRO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Adam Karon officer: EVP & GM Media Division C/O AKAMAI TECHNOLOGIES, INC., 150 BROADWAY, CAMBRIDGE MA 02142
Mani Sundaram officer: EVP GSS and CIO C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
F Thomson Leighton director, officer: Chief Scientist 500 TECHNOLOGY SQUARE, FIFTH FLOOR, CAMBRIDGE MA 02139
Verwaayen Bernardus Johannes Maria director 55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Rick M Mcconnell officer: EVP - Products and Development LATITUDE, 2121 TASMAN DRIVE, SANTA CLARA CA 4089887256
Monte E Ford director C/O AKAMAI TECHNOLOGIES, INC., 8 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Laura Howell officer: VP, Chief Accounting Officer C/O AKAMAI TECHNOLOGIES, INC., 145 BROADWAY, CAMBRIDGE MA 02142
Jill A Greenthal director MARTHA STEWART LIVING OMNIMEDIA INC, 11 WEST 42ND STREET 25TH FLOOR, NEW YORK NY 10036